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Stock Analysis, IPO, Mutual Funds, Bonds & More

If you are a investor in a scheme, you can just activate the SWP option in the scheme, whenever you feel the need for regular cash flows.

Traditionally IPV was done physically where an employee of the intermediary would visit and verify but now it is done online via video conferencing.

Credit risk funds that invest in securities with lower ratings have the potential to give higher returns to investors as compared to traditional debt funds.

Systematic Investment Plan or SIP has become a buzzword in the investment world.

What does rating downgrade of debt securities mean?

Rating downgrade results in losses for investors as there is a fall in the price of the debt instrument.

The NBFC crisis has brought liquid funds back in favour as they carry lower risk than corporate FDs.

Side-pocketing helps stabilise the net asset value (NAV) and reduces redemptions in the scheme.

A credit rating indicates the likelihood of timely payment of interest and principal by the rated security and is a measure of credit risk or risk of default.

Investing in too many products, whether in stocks or MFs, shows the investor is not thinking hard enough.

Why asset allocation is important in current market?

As the stock markets touch new highs, investor must not go overboard on any asset class and stick to their suggested asset allocation.

Ultra conservative investors are asking whether there are any mutual fund schemes that are totally risk free.

Understanding alpha helps in understanding the soundness of one’s investments in a scheme.

Last year, Sebi amended the TER slab structure which reduced mutual funds’ fund management costs.

You can invest a small amount in a mutual fund scheme and it will invest the money on your behalf for a small fee.

Why do wealth managers recommend multi cap mutual funds?

Many wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation

Returns from arbitrage funds depend on arbitrage opportunities available between the spot market and the futures market.

FMPs are closed-ended debt funds with a maturity period that can range from one month to five years.

Mutual fund advisors say the first step to create a mutual fund portfolio is to have clear financial goals in mind. The goals could be buying a house, go for a vacation, your higher education, and so on.

FMPs are closed end debt funds with a maturity period that can range from one month to five years.

All you need to know about credit-risk funds

Credit-risk funds are debt funds which have at least 65% of their investments in less than AA-rated papers. They aim to generate higher returns by taking higher credit or by investing in lower-rated papers. These lower-rated papers typically have the potential to offer 2-3% higher returns compared to risk-free papers.

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